Bank Performance Analysis: Methodology and Empirical Evidence (Estonian Banking System, 1994-2002)

28 Pages Posted: 6 Feb 2004

See all articles by Vello Vensel

Vello Vensel

Tallinn Technical University - Department of Economics

August Aarma

Tallinn Technical University - Department of Economics

Jaan Vainu

Tallinn Technical University - Department of Economics

Abstract

Banks and other financial institutions are a unique set of business firms whose assets and liabilities, regulatory restrictions, economic functions and operating make them an important subject of research, particularly in the conditions of the emerging financial sectors in the EU accession countries from Central and Eastern Europe (CEE). Banks' performance monitoring, analysis and control needs special analysis in respect to their operation and performance results from the viewpoint of different audiences, like investors/owners, regulators, customers/clients, and management themselves. Some historical notes on the development of the Estonian banking system and the capital structure of banks are presented in this article. Different versions of financial ratio analysis are used for the bank performance analysis using financial statement items as initial data sources. The usage of a modified version of DuPont financial ratio analysis and a novel matrix approach is discussed in the article. Empirical results of the Estonian commercial banking system performance analysis are also presented in the article (1994-2002).

Keywords: banks' performance analysis, financial ratio analysis, DuPont model, matrix model, banking system restructuring, production function

JEL Classification: G21

Suggested Citation

Vensel (deceased), Vello and Aarma, August and Vainu, Jaan, Bank Performance Analysis: Methodology and Empirical Evidence (Estonian Banking System, 1994-2002). Available at SSRN: https://ssrn.com/abstract=499434 or http://dx.doi.org/10.2139/ssrn.499434

Vello Vensel (deceased)

Tallinn Technical University - Department of Economics

N/A

August Aarma (Contact Author)

Tallinn Technical University - Department of Economics ( email )

Tallinn
Estonia
+ 372-6204051 (Phone)
+372-6204051 (Fax)

Jaan Vainu

Tallinn Technical University - Department of Economics ( email )

Tallinn
Estonia
+ 372-6204051 (Phone)
+372-6204051 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
5,656
Abstract Views
21,313
rank
1,587
PlumX Metrics